Closing summary: US dollar moves European markets

After a volatile day, the London stock market has closed higher tonight thanks to a surge in natural resource companies.

Silver produced Fresnillo, mining giant Antofagasta and commodity trading group Glencore all surged almost 10% today. They were following a pick-up in the prices of metals, thanks to the weaker dollar which remains on track for its worst day against the British pound since 2009.

So the FTSE finished 25 points higher, at 6,201 points.

Chris Beauchamp of IG says miners saved the day:

Were it not for the mining sector, the FTSE 100 would be firmly in the red, but with commodity prices looking perkier thanks to a weaker dollar, the index has been able to hold close to its recent peak around 6200.

European markets have finisher in the red, with the French CAC losing 0.5% and German DAX down almost 1%. That’s partly due to alarm over the strength of the euro against the US dollar tonight.

Traders will have plenty to chew on as they travel home, particularly about central banker.

Last night’s Fed announcements set the scene for a day in which two central banks cut interest rates (Norway and Indonesia), while two more held rates steady but issued gloomy statements (Switzerlandand theUK).

Can central banks really keep bailing us out? Or as Justin Trudeau point out, isn’t it really time for fiscal policy to do more?.....

Ever felt like you’re languishing in the wrong job, toiling away at the coalface as your glittering talents go to waste?

Me neither. But according to the UK stats office, one in three workers are either over or under-qualified for their roles.

As Katie Allen explains, it’s not a great sign:

In another blow to hopes that the UK can lift its productivity growth out of the doldrums, data from the Office for National Statistics shows the proportion of workers “matched” to their job has dropped in recent years.

At 68.7% in the three months to December 2015, the percentage of those in employment with a level of education close to the average of their job was down compared with 69.9% two years earlier.

Worries about the global economy are likely to weigh the New York stock market when trading begins, in 30 minutes time.

Reuters explains:

Wall Street was set for a lower open onThursday, a day after the Federal Reserve’s lowered expectations of two interest rate hikes in 2016 pushed the S&P 500 to its highest close this year.

The Fed, which left rates unchanged, pointed to moderateU.S. economic growth and strong job gains but cautioned about risks from an uncertain global economy.

While markets across assets cheered the move, the central bank’s dovish tone raised some concern about the prospects of the weakness in the global economy impacting the U.S. economy.

“There’s this little bit of rethinking and so, we’re looking at a softer opening as some questions arise to the prospects of future growth impacting earnings,” said Peter Cardillo, chief market economist at First Standard Financial in New York.

Martin Beck, senior economic advisor to the EY ITEM Club, believes UK interest rates will remain at record lows for at least another year.

He cites weak demand in the eurozone, and weakness in the UK economy too:

“The prospect of a hike in the Bank Rate remains one for the dim and distant future. The euro-zone - the UK’s single largest source of imports - fell into deflation in February. Moreover, a backdrop of further falls in factory gate prices, subdued wage growth, and February seeing cuts in gas bills, also points to UK inflation rising very modestly this year.

In addition, the Chancellor’s Budget plans imply a slightly more severe fiscal squeeze over the next five years than previously planned, which should further caution the MPC against a tighter policy.”